US and China consider Trump-Xi talks on AI guardrails amid tech tensions

The United States and China are considering talks between Presidents Donald Trump and Xi Jinping focusing on the establishment of artificial intelligence (AI) guardrails, despite ongoing tensions over technology and trade. The discussions are reportedly aimed at addressing AI safety risks and exploring possibilities for cooperation on monitoring AI-enabled cyberattacks. This initiative follows a previous summit in May 2026 in Beijing, where both leaders acknowledged the potential for collaboration on AI but did not finalize any agreements. The move is seen as a potential step toward diplomatic de-escalation, amidst a competitive landscape characterized by export controls and differing national AI strategies. Key Takeaways The reported consideration of AI guardrail talks suggests a potential thaw in US-China relations, which may increase the likelihood of a high-level visit. Current market pricing is strongly supportive of a scenario where Xi Jinping visits the US before the end of 2026, with the December 31 sub-market showing a 96.1% YES probability. The AI talks could indicate a diplomatic opening, but the broader context of rivalry and competition in technology and trade persists...